Amplitude Energy Limited · ASX:AEL
Amplitude Energy — Cooper Energy — RIU Good Oil Conference 2015
36 slides from Amplitude Energy's conference presentation, Sep 3, 2015
Slide 1: Gas project development, Oil production, Exploration
Gas project development Oil production Exploration Bungaloo-1 Otway Basin Orbost gas plant David Maxwell, Managing Director 3 September 2015
Slide 2: Important Notice – Disclaimer
Important Notice – Disclaimer The information in this presentation: • Is not an offer or recommendation to purchase or subscribe for shares in Cooper Energy Limited or to retain or sell any shares that are currently held. • Does not take into account the individual investment objectives or the finan
Slide 3: Cooper Energy …… a re-introduction
Cooper Energy …… a re-introduction Since 2002 Cooper Energy’s business has been onshore oil production and exploration….. …we are now in the midst of transforming to one of Australia’s largest mid-cap gas producers, whilst retaining our low cost oil production Presentation to RIU Good Oil Conference
Slide 4: Indicative Cooper Energy production from existing assets
Indicative Cooper Energy production from existing assets Current projects have capacity to take production from 0.5 to 5 million boe pa FY22 • Low cost • Conventional • Proven technologies FY20 Gippsland liquids Gippsland gas Existing oil with exploration & appraisal FY15 Oil production 0.5 MMbbls G
Slide 5: Reserves and Contingent Resources at June 2015
Reserves and Contingent Resources at 30 June 2015 Cooper Basin & Indonesia oil Reserves; Gippsland Basin Contingent Resources 2P Reserves1 Australia Indonesia Total Million barrels Developed 1.16 1.02 2.18 Undeveloped 0.22 0.68 0.90 Total 1.38 1.70 3.08 2C Contingent 1 Gas Oil Total Resources PJ MMb
Slide 6: Oil production
Oil production Maintaining ~ 500,000 barrels per annum, low production cost that generates cash, plus hedging in place FY16 production guidance Production costs MMbbl Direct cost A$ per barrel 0.59 0.52 0.55 0.49 0.48 to 0.50 – 0.45 0.47 Netback 0.41 7 Royalties 15 Transport 16 Op. costs FY11 FY12 F
Slide 7: Oil business: Cooper Basin PRLs 85-104 & PEL 93
Oil business: Cooper Basin PRLs 85-104 (ex-PEL 92) & PEL 93 PEL 92 replaced 120% of 2015 production PEL 92 key 2015 outcomes: • oil production of 400 kbbls • $35/bbl total operating cost including transport and royalties • 2 successful wells (Callawonga 10 & 11) • 2P reserve additions replaced 120%
Slide 8: Indonesia
Indonesia 2015 production up 36% and reserves up 260% • Full year production up from 55 kbbls to 75 kbbls • Total operating cost of A$45/bbl including transport • Bunian-3 appraisal/development well success : - TRM3 Sand developed and new K1 gas and oil pool discovered - KSO reserves increased from
Slide 9: The opportunity in gas
The opportunity in gas COE identified opportunities in the emerging shortfall between forecast demand and existing contracts Eastern Australia demand and contracted supply (PJ) 800 Contracted supply from: 700 Forecast east coast domestic demand Gippsland 600 Otway 500 Bass Contract opportunity 400 S
Slide 10: Gippsland Basin gas projects
Gippsland Basin gas projects Focussed on project ‘do-ability’, access to market and value Portfolio in place • Acquired 50% of VIC/RL3 including Sole gas field • Acquired 50% of Orbost gas plant • Completed transfer of VIC/L 26, L2, L28 (BMG) Resources increased • Increased gas 2C Contingent Resourc
Slide 11: Gippsland Gas Projects and Orbost Gas Hub
Gippsland Gas Projects and Orbost Gas Hub Marketable gas volumes, existing plant and pipeline access in place to Melbourne Eastern Gas Pipeline to Sydney Orbost Gas Hub COE 50%, STO 50% Sole Gas field COE 50%, STO 50% & Operator Patricia Baleen (depleted) (STO 100%) ~211* PJ Longtom (SVW 100%) 2.6 *
Slide 12: Sole and Manta gas production profile
Sole and Manta gas production profile1: 100% Joint Venture volume Gas sales revenue of $1.9 - $2.9 billion at $6 - $9 /GJ and additional revenue from liquids Indicative gross PJ 60 • Gippsland gas projects can produce approximately 320 PJ (gross) from current projects 50 • Peak production circa 50 P
Slide 13: Cooper Energy indicative production
Cooper Energy indicative1 production Gas projects deliver transformational growth to 2.5 million boe then to ~ 5 million boe pa Indicative net production (mmboe) 6 5 4 Manta - Liquids 3 Manta - Gas 2 Sole - gas Existing2 Cooper Basin & Indonesia - oil 1 1 Indicative only and subject to key milestone
Slide 14: Funding
Funding Funding strategy • Funding analysis and strategy completed in phases including post-Gippsland developments (with Grant Samuel advising) Operating cash flow • Multiple funding options available including asset divestments and sell-downs, project finance and equity/equity like funding 40 • App
Slide 15: Coming milestones
Coming milestones1 Succession of gas projects milestones and catalysts in coming 6 – 18 months 6 months to 31 Dec 15 Secure threshold gas sales Heads of Agreement for Sole development Finalise funding structure Drilling in Indonesia and Cooper Basin 6 months to 30 June 16 Conversion of Sole gas Head
Slide 16: To sum up…
To sum up… Solid existing business being transformed by existing conventional gas projects Current - strong balance sheet, cash generating production, reserves and resources: • Production of 450 – 550 kbbls in FY16; A$38/bbl cash cost is robust at current prices • Hedging program provides downside p
Slide 17: Appendices
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Slide 18: Company snapshot
Company snapshot ASX listed, strong balance sheet and stable share register Cooper Energy is an independent Australian exploration Key figures and production company Shares on issue 331.9 mill • Cash generating from production of approx. 500,000 Shareholders 5,100 barrels of oil per annum 12 month s
Slide 19: Business model and focus
Business model and focus Focus on returns & care through disciplined application of resources and core skills Total Shareholder Return and Health Safety Environment Community Strategy • High margin oil • Fundamentals focus: market, technical, cost & commercial • Gas portfolio • Leverage and grow str
Slide 20: Major exploration and development activities FY16
Major exploration and development activities FY16 Location License Operator Sept Qtr Dec Qtr March Qtr June Qtr 2 development wells and 2 exploration wells, 2 PEL 92 Beach contingent wells, seismic processing Cooper PEL 90, 100,110 Senex 2 contingent wells & seismic processing PPL 207 Senex 2 contin
Slide 21: Reserves & Resources
Reserves & Resources1 Petroleum Reserves at 30 June 2015 (MMbbl) Category Proved (1P) Proved plus Probable (2P) Proved, Probable plus Possible (3P) Australia Indonesia Total Australia Indonesia Total Australia Indonesia Total Developed 0.84 0.62 1.46 1.16 1.02 2.18 1.48 1.61 3.09 Undeveloped 0.22 0.
Slide 22: FY16 guidance
FY16 guidance Production guidance comparable with historical trend, Gippsland gas accounts for most capex • FY16 production guidance 0.45 MMbbl - 0.55 MMbbl (excludes exploration success or significant production interruption) • Indonesia share forecast to rise to approx 35% • Operating costs per ba
Slide 23: Indicative gas supply cost curve
Indicative gas supply cost curve Indicative illustration of various reservoir types in Eastern Australia Economic ex-field gas price $/GJ Other key variables Shale • Liquids content • Inerts content e.g. CO2, N2 • Size/economy of scale CSG • Community & approvals Tight conventional • Access to infra
Slide 24: Gas business
Gas business Portfolio of gas assets built around competitive supply costs and access to market • Market-driven approach • Building customer relationships • Gas sales terms being negotiated • Pipeline transport expertise Otway Basin Gippsland Basin • Ideally located: close to markets and pipelines •
Slide 25: Sole Gas Project
Sole Gas Project Simple stand alone field development utilising existing plant Sole Gas Field • Contingent Resources (2C) of 211 PJ • Sole gas field in FEED for development to supply gas from Jan quarter 2019 • FEED expected to complete/proceed to FID in Sept quarter 2016 • Sole Gas Project developm
Slide 26: Manta Gas Project
Manta Gas Project 65% interest and Operator of gas project offering commercial opportunity and synergies with Sole • Gas resource of 106 PJ 2C Contingent and Risked Prospective Resource of 10 PJ • COE Business case identified economic opportunity • Preferred option utilises synergies with adjacent S
Slide 27: Gippsland gas project status
Gippsland gas project status • Working towards FID with a defined resources base and customer support Current position Next steps Project Sole project in FEED • Sole FID due Sept Qtr 2016 development BMG Business Case highlights Manta opportunity • Manta appraisal planning concurrent with JV rev
Slide 28: Gippsland gas projects indicative timeline
Gippsland gas projects indicative* timeline Key commercial and project milestones for value accretion in coming 12 – 28 months Calendar Year 2015 2016 2017 2018 2019 2020 2021 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Sole Gas Project Select FID Define First
Slide 29: Gippsland Basin interests
Gippsland Basin interests Strategy execution - built Cooper Energy to be a significant player in the development of Gippsland Basin gas 2012: – identifies strategic value of Gippsland Basin gas for Eastern Australia – acquires stake in Bass Strait Oil Company (BAS) 2014: – initiates gas customer dis
Slide 30: Otway Basin
Otway Basin Drilling results and analysis confirm prospectivity for conventional gas and shale potential • Analysis of Jolly-1 and Bungaloo-1 well data in PEL 495 and PRL 32 has confirmed; – A deep conventional gas play in Lower Sawpit Formation – The Casterton Formation unconventional shale gas pla
Slide 31: Tunisia
Tunisia Shareholder value driven monetisation of extensive portfolio • 3 permits covering 12,600 km2 • Hammamet West oil discovery – gross contingent resource estimated to be 12.6 MMboe (1C) to 110.4 MMboe (3C)1 – oil development opportunity • Multiple prospects • Reducing commitments Divestment pla
Slide 32: Notes on calculation of Reserves and Resources
Notes on calculation of Reserves and Resources Calculation of Reserves and Resources The approach for all reserve and resource calculations is consistent with the definitions and guidelines in the Society of Petroleum Engineers (SPE) 2007 Petroleum Resources Management System (PRMS). The resource es
Slide 33: Abbreviations
Abbreviations bbls barrels of oil boe barrel of oil equivalent bopd barrel of oil per day EBITDA earnings before interest, tax, depreciation and amortisation kbbls thousand barrels LTIFR Lost Time Injury Frequency Rate. Lost Time Incidents per million man hours worked MMbbl million barrels of oil MM
Slide 34: Notes
Notes Presentation to RIU Good Oil Conference 3 September 2015 34
Slide 35: Contact details
Contact details Website: cooperenergy.com.au Investor relations: Don Murchland +61 439 300 932 [email protected] Address: Cooper Energy Limited Level 10, 60 Waymouth St Adelaide SA 5000 + 61 8 8100 4900 Presentation to RIU Good Oil Conference 3 September 2015 35
Slide 36: Whhd
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